In anticipation of the Financial Services Authority's new policy, Indonesian banks categorized under BUKU III claim to be ready for a lower net interest margin (NIM). NIM is the difference between interest income generated by banks and the amount of interest paid out to the lenders. BUKU (Bank Umum Kelompok Usaha) is a categorization system, designed by Bank Indonesia, that divides Indonesian banks into four categories based on the banks' capital. Banks categorized under BUKU III have capital between IDR 5 trillion (approx. USD $373 million) and IDR 30 trillion (approx. USD $2.2 billion).

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Fuad Rahmany, Director General of Taxes at the Indonesian Finance Ministry, said that state revenue from taxes will not achieve the target that has been set in the Revised 2014 State Budget (APBNP 2014). Rahmany expects that only 94 percent of the target, or about IDR 1,008 trillion (USD $84 billion) will be achieved (this figure excludes import duties and excise duties). Classical problems that cause Indonesia’s low tax-to-GDP ratio include low tax compliance, the low number of tax officials, and weak government coordination.

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The structure of tax revenue in Indonesia has not changed in the past decade resulting in the country’s still low tax-to-GDP ratio of between 12 and 13 percent. Emerging countries such as Indonesia typically have a low tax-to-GDP ratio as the government’s financial management is inadequate (and plagued by corruption). However, it is important for Indonesia to raise this ratio in order to have more funds available to finance the budget deficit, infrastructure development, healthcare, education and other social programs to combat poverty.

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A new financial management system was launched in April 2015 by the Indonesian government. This new system, called Sistem Perbendaharaan dan Anggaran Negara (abbreviated SPAN), aims to enhance public efficiency, transparency and accountability in Indonesia by managing the financial transactions of more than 24,000 government spending units in all 33 provinces. According to a new World Bank story, Indonesia's new financial system has managed to improve efficiency, transparency and accountability. Moreover, it improves budget planning and spending.

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One strategy of Indonesian President Joko Widodo to generate more state revenues in order to enhance investments in social and economic development of Indonesia is by improving the country’s tax collection system. As the middle class as well as number of companies that are active in Indonesia has risen rapidly in recent years, it is disappointing that tax collection targets are rarely met in Southeast Asia’s largest economy: tax compliance is low, while corruption among civil servants (tax collectors) remains a structural problem.

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